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Understanding Homeowners Insurance

Purchasing homeowners insurance is a crucial step in protecting your most significant investment. At O1ne Mortgage, we want to ensure you have all the information you need to make an informed decision. Call us at 213-732-3074 for any mortgage service needs.

What Is Not Covered by Homeowners Insurance?

Standard homeowners insurance policies usually don’t cover the following:

Natural Disasters

Earthquakes, floods, sinkholes, and landslides are typically not covered as they are region-specific risks.

Water Backups

Damage from sewer, septic tank, and drain backups or sump pump failures is not covered.

Wear and Tear

Homeowners insurance does not cover the cost of replacing or repairing aging home systems.

Animal and Insect Damage

Damage caused by animals or insects, such as rodents or termites, is generally not covered.

Dog Attacks

While some policies cover dog bites, certain breeds or dogs with a history of biting may not be covered.

Other exclusions include intentional damage, war, government seizure, nuclear accidents, and pollution.

What Is Covered Under a Homeowners Insurance Policy?

A standard homeowners insurance policy generally includes four types of coverage:

Dwelling Coverage

This covers the repair or rebuilding of your home’s structure if damaged by fire, smoke, hail, lightning, vandalism, theft, wind, or other covered events.

Personal Property Coverage

This pays to repair or replace personal possessions like furniture, appliances, and clothing if stolen or damaged in a covered incident.

Liability Coverage

This covers medical and legal costs if a visitor is injured at your home and sues you.

Additional Living Expenses (ALE)

This helps pay for living elsewhere while your home is being repaired or rebuilt.

Homeowners Insurance Add-Ons

Consider these add-ons to fully protect your home:

Flood Insurance

Check your home’s flood risk using FEMA’s flood map. Flood insurance can be a smart investment even if not required by your lender.

Earthquake Insurance

This covers your home’s structure, personal property, and additional living expenses in the event of an earthquake.

Sinkhole Insurance

In some states, insurance companies are required to offer sinkhole insurance.

Water Backup Insurance

This pays for damage due to water backing up into your home from a drain, sewer, or sump pump failure.

How to Save Money on Home Insurance

Here are some tips to save on homeowners insurance:

Raise Your Deductible

Increasing your deductible can lower your premiums, but ensure you can afford the higher deductible if you need to file a claim.

Shop Around

Get quotes from multiple insurance carriers and compare them to your current costs.

Search for Discounts

Look for discounts for bundling policies, paying premiums in full, or setting up autopayments.

Safeguard Your Home

Home improvements like updating old systems or installing security features can reduce your premiums.

Improve Your Credit Score

Insurance companies often charge lower premiums for those with higher credit scores.

The Bottom Line

Budgeting for homeowners insurance is essential. Shopping around, looking for discounts, and maintaining good credit can help you save money. For any mortgage service needs, contact O1ne Mortgage at 213-732-3074. We’re here to help you protect your home.

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